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Bon mots

"You can observe a lot just by watching." Yogi Berra

"We do not distain to borrow wit or wisdom from any man who is capable of lending us either." Henry Fielding, Tom Jones

"In our complex society the accountant's certificate and the lawyer's opinion can be instruments for inflicting pecuniary loss more potent than the chisel or the crowbar." United States v. Benjamin, 328 F.2d 854, 862 (2d Cir. 1964)

Application of Chinese Firm For Registration As Recognized Rating Organization Denied

Dagong Global Credit Rating Co., Ltd., Exchange Act Rel. 62968, September 22, 2010

Dagong submitted an application under Exchange Act Section 15E for registration as a Nationally Recognized Statistical Rating Organization (NRSRO). Dagong is based in China. The application was denied.

Dagong is the largest rating agency in China. Any NRSRO is subject to various rules regarding keeping and maintaining books and records and are subject to on-site inspections by SEC staff. Dagong could not guarantee that Chinese securities regulators would permit SEC staff inspections and allow Dagong to provide documents to SEC staff if requested. It represented only that it would make good faith efforts to comply with SEC rules. Thus compliance with U.S. law was ultimately subject to the permission of Chinese securities regulators. The application was therefore rejected because Dagong was unable to represent that it was able to comply with the recordkeeping, document production, and examination provisions of U.S. law.